Ask Sallie: Why Would You Want to Invest for Impact? (Video)

By Sallie Krawcheck

Impact investing is just making choices that align your investment dollars with the values you believe in. So why do some people pass it by? Sallie breaks it down.

Sallie’s answer:

A question I often get is, “Why would I want to invest for impact?” Why wouldn’t you want to invest for impact? Why wouldn’t you want to invest in companies that are doing right by the environment, that have a strong stance on social issues like human rights, that have strong corporate governance? The answer often comes back, “But you have to give up return for that, don't you? And how much return am I going to give up?” That, in my opinion, is dated thinking. 

Let me take one example. One of our favorites at Ellevest, gender-lens investing — investing with an eye toward the composition of the board, the leadership team, the company. When the research tells us the diverse leadership teams lead to higher returns — not by a little, by a lot. Returns on equity, lower risk, greater innovation, greater employee engagement, greater customer engagement, that diverse teams outperform “smarter” teams

But then somehow, you have to give up return on the stocks, in order to invest in them? Outdated thinking.

Want to feel like you’re set up to do the right things for you with your money? Book a complimentary 15-minute call with an Ellevest financial planner and get support right away.


© 2024 Ellevest, Inc. All Rights Reserved.

All opinions and views expressed by Ellevest are current as of the date of this writing, are for informational purposes only, and do not constitute or imply an endorsement of any third party’s products or services.

Information was obtained from third-party sources, which we believe to be reliable but are not guaranteed for accuracy or completeness.

The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities, and should not be considered specific legal, investment, or tax advice.

The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person.

Investing entails risk, including the possible loss of principal, and past performance is not predictive of future results.

Ellevest, Inc. is a SEC registered investment adviser. Ellevest fees and additional information can be found at

A newsletter you’ll love

Get all the news, advice, and must-know info on women, money, and career.

Sallie Krawcheck

Sallie Krawcheck is the Founder & CEO of Ellevest.